[Takryucheongron] 'Integration of 3 Major Delivery Apps' Mobile Delivery Monopoly Harms

Jung Jong-yeol, Director of Policy, National Franchise Owners Association

The spatial concentration and temporal expansion of markets have now reached the stage of online and mobile operation, running 24/7 throughout the year. Traditional large-scale markets such as big supermarkets and complex shopping malls, which used to operate permanently even at night, are being replaced by the spread and development of online mobile devices, transforming everyday life.

Concerns are spreading regarding the online mobile delivery market, which has entered a full-fledged growth phase under a delivery app monopoly system. There are worries that not only will delivery app companies monopolize the fruits of innovation, but also that the addition of a simple intermediary transaction stage will reduce the existing profits of self-employed business owners. Technological advancement should increase social utility and be distributed rationally among members of society. If not distributed rationally, it can cause irrationality and ultimately hinder industrial development.

However, recent cases of some self-employed business owners, such as chicken franchise stores, following the emergence and growth of delivery apps raise doubts as to whether delivery apps actually increase total sales or merely shift existing sales channels from direct orders by phone to delivery app orders. In this case, total sales do not grow, but delivery app companies take delivery app fees ranging from 8.5% to 12.5% of sales, causing leakage in the self-employed sector and reducing the profits of self-employed business owners accordingly. This can act as a factor that exacerbates the already difficult situation of self-employed business owners.

Secondly, there is concern that the monopolization of the delivery app market will disrupt the market and cause actual fee increases and service quality deterioration before the online mobile market, including delivery apps, has sufficiently grown. The negative effects of monopoly will ultimately be passed on to consumers in the form of price increases. Thirdly, there is concern about information monopolization as delivery app companies take over consumer information previously held by self-employed business owners. This also affects goodwill payments. In the case of self-employed business owners centered on delivery, since the delivery app company?not the self-employed transferor?holds customer information, the transferor has no customer information to pass on to the transferee. Fourthly, by performing advertising as well, delivery app companies effectively subordinate the self-employed business owners’ advertising rights to themselves, turning self-employed business owners into mere suppliers of goods or services to delivery app companies.

To resolve these issues, in principle, the benefits expanded by new online mobile technologies such as delivery apps should be distributed rationally among members of society. Furthermore, platforms with the nature of service infrastructure should be operated openly under fair rules so that anyone can enter and utilize them. Private profit generation should be created through value-added services within platforms that maintain fair and rational order as much as possible. This will be possible when the online mobile market, including delivery apps, avoids monopolization and fosters a healthy competitive environment. Regulatory authorities should also take this opportunity to establish a fair order in the online mobile market, including delivery app fees. Reasonable fee standards, such as caps on delivery app fees, must be established.

Moreover, it is time to consider establishing a system that ensures healthy checks and balances in the delivery app market and allows self-employed business owners to use the service with peace of mind, free from various fee abuses and the fear of information monopolization. It is a time when building a public-type delivery app platform and supplementing systems for fair trade in the delivery app market, with direct participation from self-employed business owners to guarantee stability, as well as active support, are necessary.

Jung Jong-yeol, Director of Policy, National Franchisee Association

This content was produced with the assistance of AI translation services.